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    Saturday, November 2, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 01 Nov 2019 05:14 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive significant other?
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution

    Posted: 01 Nov 2019 09:37 PM PDT

    New book to be published Nov 5th by Gregory Zuckerman.

    There's a good excerpt in WSJ: https://www.wsj.com/articles/the-making-of-the-worlds-greatest-investor-11572667202

    Here's the beginning:

    The Making of the World's Greatest Investor Jim Simons was a middle-aged mathematician in a strip mall who knew little about finance. He had to overcome his own doubts to turn Wall Street on its head.

    by Gregory Zuckerman

    Jim Simons sat in a storefront office in a dreary Long Island strip mall. He was next to a women's clothing boutique, two doors from a pizza joint and across from a tiny, one-story train station. His office had beige wallpaper, a single computer terminal, and spotty phone service.

    It was early summer 1978, weeks after Mr. Simons ditched a distinguished mathematics career to try his hand trading currencies. Forty years old, with a slight paunch and long, graying hair, the former professor hungered for serious wealth. But this wry, chain-smoking teacher had never taken a finance class, didn't know much about trading, and had no clue how to estimate earnings or predict the economy.

    For a while, Mr. Simons traded like most everyone else, relying on intuition and old-fashioned research. But the ups and downs left him sick to his stomach. Mr. Simons recruited renowned mathematicians and his results improved, but the partnerships eventually crumbled amid sudden losses and unexpected acrimony. Returns at his hedge fund were so awful he had to halt its trading and employees worried he'd close the business.

    Today, Mr. Simons is considered the most successful money maker in the history of modern finance. Since 1988, his flagship Medallion fund has generated average annual returns of 66% before charging hefty investor fees—39% after fees—racking up trading gains of more than $100 billion. No one in the investment world comes close. Warren Buffett, George Soros, Peter Lynch, Steve Cohen, and Ray Dalio all fall short.

    submitted by /u/ron_leflore
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    Goldman Sachs says antitrust to heat up in 2020, pressure Facebook, Google shares for 'years'

    Posted: 01 Nov 2019 12:28 PM PDT

    https://www.cnbc.com/2019/11/01/goldman-sachs-says-antitrust-concerns-will-pressure-facebook-google.html

    Goldman Sachs downgrades the communications services sector to a neutral rating based on regulatory pressure and expected lackluster performance.

    "Antitrust lawsuits typically take years to resolve but ultimately result in lower valuation," writes David Kostin, chief equity strategist at Goldman Sachs.

    Whether Kostin's caution is called for will depend on coordination between lawmakers on both sides of the aisle as well as the results of the 2020 election.

    submitted by /u/coolcomfort123
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    A little investing tip: Remind yourself of when you've been wrong

    Posted: 01 Nov 2019 02:07 PM PDT

    Back in August, the market was starting to trade sideways and there were all those recession signs, like the inverted yield curves, etc etc. I was seriously considering moving a bunch of investments into cash but didn't. Since then, the market has been up about 7% -- an average year's worth of gains. The market will tank eventually, but I've had these thoughts of moving to safety many times over the past 3 years. If I'd have acted, I would have missed out on a huge rally.

    Investing and trading mistakes often comes from cognitive biases like confirmation bias (only notice evidence that confirms what you already think) and hindsight bias (new knowledge now seems obvious) so I find it's helpful to counteract those biases by reminding myself of what I thought and felt in the past and how wrong I have been. It helps me avoid panic moves in the present because it reminds me how wrong I can be and the I'm still that same person.

    submitted by /u/mettle
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    Google reaches agreement to purchase Fitbit for $2.1B

    Posted: 01 Nov 2019 06:12 AM PDT

    U.S. Deficit Reaches Seven-Year High During 2019

    Posted: 01 Nov 2019 06:13 AM PDT

    https://www.thetrumpet.com/21424-us-deficit-reaches-seven-year-high-during-2019

    The U.S. borrowed a total of $984 billion in fiscal year 2019, according to the Treasury statement. It is expected to exceed $1 trillion for the next fiscal year. This is a 26 percent increase over last year. This is being driven by higher defense spending, Medicare and interest payments on the national debt.

    submitted by /u/MrCrickets
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    U.S. Farm Bankruptcies Surge 24% on Strain From Trump Trade War

    Posted: 02 Nov 2019 02:40 AM PDT

    https://www.bloomberg.com/news/articles/2019-10-30/u-s-farm-bankruptcies-surge-24-on-strain-from-trump-trade-war

    Almost 40% of projected farm profit this year will come from trade aid, disaster assistance, federal subsidies and insurance payments, according to the report, based on Department of Agriculture forecasts. That's $33 billion of a projected $88 billion in income.

    submitted by /u/MrCrickets
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    Whirlpool criticsed in UK for using controversial gagging clauses to "silence customers" who had been fire victims of its faulty tumble dryers

    Posted: 01 Nov 2019 04:50 AM PDT

    The report also found it "astonishing" that there were still up to 800,000 faulty machines in people's homes four years after the Whirlpool revealed they posed a fire hazard.

    This is not a recommendation to buy or sell. Stocks are risky and not suitable for everybody. Please do your own research.

    https://news.sky.com/story/whirlpool-condemned-for-gagging-faulty-dryer-fire-victims-11850792

    submitted by /u/InterestingNews1
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    Barneys Is Sold for Scrap, Ending an Era

    Posted: 02 Nov 2019 02:46 AM PDT

    https://www.nytimes.com/2019/11/01/business/media/barneys-bankruptcy-authentic-brands.html

    Authentic Brands Group will take control of the Barneys name — one that has been part of the Manhattan landscape since 1923 — and license it to other companies like Saks Fifth Avenue. The firm B. Riley Financial is preparing to liquidate Barneys' high-end wares, at its five stores and two Warehouse locations, starting with private sale events for Barneys' "most loyal" shoppers next week.

    submitted by /u/MrCrickets
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    October job creation easily tops estimates even with auto strike

    Posted: 01 Nov 2019 05:36 AM PDT

    Nonfarm payrolls rose by 128,000 in October as the U.S. economy overcame the weight of the autoworkers' strike and created jobs at a pace well above expectations.

    Even with a decline of 42,000 in the motor vehicles and parts industry, the pace of new jobs well exceeded the estimate of 75,000 from economists surveyed by Dow Jones. The loss of jobs came due to the General Motors strike that has since been settled. That job less itself was less than the 50,000 or more that many economists had been anticipating.

    The unemployment rate ticked higher to 3.6%, in line with estimates, but remains around the lowest in 50 years. A more encompassing measure that includes discouraged workers and those holding part-time positions for economic reasons also edged up to 7%.

    https://www.cnbc.com/2019/11/01/jobs-report-october-2019.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

    Edit: CNBC changed the headline after I posted it

    submitted by /u/NineteenEighty9
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    Lots of money lost by not investing in the stock market by my wild leisure spending through the years!

    Posted: 01 Nov 2019 08:24 AM PDT

    Do you keep records of the money you spent on leisure each year? I am talking about fancy meals out, Starbucks, Alcohol, Concerts, and Travel, etc?

    What if you would had not spent that money on leisure "wants" and instead had put that money in the stock market? How much money would you have?

    My wife and I like to track our income and spending and enjoy looking back at what we earned, spent and invested. We keep extensive detailed spreadsheets going back to 1990 when we got married.

    Since 1990, we have spent an average of $6000 a year on travel. $7000 a year on eating out at nice restaurants and about $2000 a year on Starbucks and $2000 for Wine, and Beer while eating out. And about $2000 on concerts, plays, and musicals. Combined this is $19,000 a year on leisure and eating out, etc. This $19K has been about 25% of our take home pay.

    If we would have not participated in these activities and put all that money in the stock market (in a total stock market fund) we would have $2,266,298 more in our retirement account and how nice would that be!

    Does this story make you want to spend less on "wants" leisure and invest more? Your thoughts, please!

    submitted by /u/chargum
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    Why is “the intelligent investor” so recommended?

    Posted: 01 Nov 2019 08:42 AM PDT

    Damn, I get it's a good book but, it's a very hard book to read for most people. Especially as a beginner book it's extremely hard. Took me months to finally MANAGE to read the book.

    submitted by /u/iratepeopleok
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    Earnings Report

    Posted: 01 Nov 2019 09:33 PM PDT

    Is it possible to find out how a stock reaction's to their earning report for couple years back?

    submitted by /u/kenny23692
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    China’s economy struggles as consumers cut back on spending

    Posted: 01 Nov 2019 06:29 AM PDT

    https://www.marketwatch.com/story/chinas-economy-struggles-as-consumers-cut-back-on-spending-2019-10-31

    Communist leaders are counting on consumers to power China's economy, replacing trade and investment. But shoppers, spooked by the tariff war and possible job losses, are cutting spending on cars, real estate and other big-ticket purchases.

    submitted by /u/MrCrickets
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    Is my portfolio diverse enough?

    Posted: 01 Nov 2019 08:42 PM PDT

    I'm 21 years old and I don't mind some risk

    VOO: 20% VTI: 10% VBK: 30% VOT: 30% VHT: 10%

    Let me know what you guys think and where or how I could improve

    submitted by /u/Djiinx
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    Social network project

    Posted: 02 Nov 2019 02:54 AM PDT

    I'm teen (17 years old boy) I have an idea of new social network Developing a new design Upgraded security system with new passing techniques But i need some investors to make my ideas real

    submitted by /u/Pesetas000
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    Anyone else notice this trend in their favorite ETF screener?

    Posted: 01 Nov 2019 02:12 PM PDT

    A ran a screen for best performing ETF's over the last 3 months with net expense ratio less than 0.3%. The best performing ETF's are long term treasuries ETF's, high quality corp bonds ETF's, precious metals (e.g. BAR) ETF's, utilities ETF's, staples ETF's, low-vol reliable dividends ETF's, and REIT ETF's.

    I don't know about you but all of these seem to scream "defensive" to one degree or another for me.

    To use a metaphor, it seems like everyone is getting ready for a winter. Like when a squirrels stores nuts for the winter.

    Is anyone else noticing this trend? Is anyone else also preparing for "winter"? If so how?

    UPDATE: I think I am going to realign some of my portfolio into some of these asset classes and sectors. Not all...just some. I think the idea of HODL one hundred percent QQQ all the things is not prudent at the moment.

    submitted by /u/freebit
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    The Dow could soon join other benchmarks at a record as strong November seasonality kicks in

    Posted: 02 Nov 2019 02:23 AM PDT

    https://www.cnbc.com/2019/11/01/the-dow-could-soon-join-other-benchmarks-at-a-record-as-strong-november-seasonality-kicks-in.html

    As November unfolds, stocks should continue to make gains in one of the best months of the year for the market, and it's very likely the Dow will soon join other indexes in setting new highs.

    The S&P 500 and Nasdaq both traded in record territory in the past trading week, boosted by some better economic news, a better-than-expected earnings season, and hopes that trade talks will soon lead to a first-phase deal between the U.S. and China. On Friday, China said it reached a consensus with the U.S. in principle after a phone call among high-level negotiators.

    submitted by /u/AngryOwlSpirit
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    VOO in robinhood or Vanguard Roth IRA?

    Posted: 02 Nov 2019 12:56 AM PDT

    Hi everyone, I'm on investing most of my money that I have saved up into either VOO or VTI ETFs. Planning in holding long term (10 years). So would it better to do it on robinhood or vanguard Roth IRA? I was just curious because isn't the vanguard Roth IRA only beneficial if you plan to invest and re-invest dividends till you retire 60 years old(tax benefits). I'm in my mid twenties and might need to use the money for a house or open up my own business.

    submitted by /u/shlee421
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    Invest between May and October only?

    Posted: 02 Nov 2019 12:16 AM PDT

    Hi all,

    I was doing research on something called the "Halloween strategy" or "Halloween indicator":

    https://www.investopedia.com/terms/h/halloween-strategy.asp

    https://en.wikipedia.org/wiki/Sell_in_May

    This chart from Investopedia was kinda compelling:

    https://www.investopedia.com/thmb/AdbyiRzyX2pMYOwd_w93pOq5G50=/1401x0/filters:no_upscale():max_bytes(150000):strip_icc():format(webp)/halloween-5bfd6cea46e0fb002645076f:max_bytes(150000):strip_icc():format(webp)/halloween-5bfd6cea46e0fb002645076f)

    As a long term investor, I was wondering if it makes sense to buy in May through October being that returns are lower (when prices are cheaper?)?

    The articles say those who follow the strategy invest during the November through April period. Seems counter-intuitive to me as they would be purchasing at a higher price during that period if true?

    Thoughts?

    submitted by /u/fazeka
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    Purpose of market makers?

    Posted: 01 Nov 2019 06:16 PM PDT

    What role do market makers play?

    submitted by /u/Picklesnizzz__
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    Why Buffett releases earnings on Saturday?

    Posted: 02 Nov 2019 12:04 AM PDT

    Real Estate Crowdfunding Investment Platform In Canada?

    Posted: 01 Nov 2019 11:53 PM PDT

    Hello there guys, I am a beginner investor and looking to diversify my portfolio aside from stocks and ETF's.

    The Fundrise Platform in USA got my interest but after doing an hour research I could not find a good crowdfunding platform alternatives here in Canada that does not require you to be a accredited investor

    Please do tell me if they are any good platforms to invest in and relatively safe( Real Estate Investment Speaking)

    Thank you😄

    submitted by /u/Savvy_Investor
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    hydrogen as fuel and magnetic trains

    Posted: 01 Nov 2019 08:03 PM PDT

    cells to produce hydrogen to use hydrogen as fuel. If I wanted to invest in this technology or in magnetic trains which companies should I keep an eye on?

    submitted by /u/luchins
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